I'm going to lease a 07 TSX base. Here is what I got

36 months
12k a year
360 a month
500 total out of pocket

OR

310 a month
2000 total out of pocket.

What do you guys think???

 

Do the 2000 out of pocket because it is cheaper in the long run, not bad terms

 

1) What is the negotiated selling price of the car? Additionally, what is the money factor and residual you're being quoted? Residual (assuming you're doing the lease with Honda Finance) is, I believe, $17,256. In at least some states (not sure if these terms are available everywhere) Honda Finance is offering a money factor of .00110 to qualified Super Preferred Tier customers.

2) Most experts recommend putting as little cash as possible upfront on a lease. Two reasons: a) If your car is totaled you may very well not get back all the money you put in upfront - the insurance company may pay off only what is owed on the lease. b) A money factor of .00110 equals an interest rate of 2.64% - at that rate it makes sense to roll as much into the lease as possible.

3) A quick calculation for you: A selling price of $26,400 plus the acquisition fee of $595 would total a cap cost of $26,995. Using the money factor and residual mentioned above, this would give you a monthly payment of $319.20 plus tax. This assumes you'd pay tags, title, dealer document fees and first month's payment upfront.

 

dealer claimed the price of the car for those numbers is 26,800

 

If you check recent posts on the Edmunds Prices Paid forum you may find that price a bit high.

http://townhall-talk.edmunds.com/WebX/.ef1584a/3211

I don't know the market in your area but here in N. California prices were around invoice a few weeks ago but have now dropped as low as $25,800, with $26,100-26,200 very easy to get. One poster is claiming a quote of $24,951 from a So. Cal. dealer.

Note: A selling price of $26,800 figures out to a monthly payment of $330.75 plus tax, using the same money factor, residual, etc. as my previous post.

 

Can you please give me a break down to how you came up with those numbers??

 

Be glad to - which numbers?

monthly payment?
money factor and residual?
selling prices?

 

all of them. Thanks I appreciate it.

 

Money factor and residual: see message #270 on Edmunds Acura TSX Lease Questions forum (add 2% to the residual for 12k mi instead of 15K mi) and message #3209 on Edmunds Acura TSX Prices Paid forum

Selling prices and/or quotes are referenced in these messages on the Edmunds Acura TSX Prices Paid forum:
#3160 26,400
#3168 25,920 26,150 26,188
#3202 25,809
#3209 26,200
#3210 1500 below invoice (a bit sceptical about this one but if I were still in the market and within a day's driving distance I'd want to check it out)

Monthly payment: To keep the calculation simple and to make it easy to double-check the dealer's lease documents for "errors" I add the negotiated selling price and the standard Honda/Acura $595 lease acquisition fee together to arrive at the cap cost. Then the formula looks like this:

(cap cost - residual)/term = monthly depreciation
(cap cost + residual) x money factor = monthly interest
monthly depreciation + monthly interest = monthly payment before sales tax

Example for a selling price of $26,800, 36 months, 12K mi/yr, 60% residual (17,256):
26,800 + 595 = cap cost of 27,395
(27,395 - 17,256)/36 = 281.64
(27,395 + 17,256) x .00110 = 49.11
281.64 + 49.11 = 330.75

To easily play with different lease numbers on an Excel spreadsheet go to
http://www.carbuyingtips.com/download.htm
and download the monthly payment lease calculator at the bottom of the page.